Deeside based pharmaceutical company NuPharm looks set to close with the loss of 66 jobs

Pharmaceutical company Quantum Pharma has said it plans to close its loss-making NuPharm business in Deeside.

The move comes after the parent company reported a drop in pre-tax profit during the first half of its financial year.

Its not known how many jobs will be lost in Deeside, Quantum say they expect the Deeside Industrial Estate business will close by the end of December.

Quantum Pharma, a County Durham headquartered pharmaceutical manufacturer bought Nupharm and Nupharm Laboratories last July in deal worth £13m but both have continued to generate cash losses.

A spokesperson for Nupharm told Deeside.com:

“The number of employees at NuPharm in Deesside is 66.

All those jobs are at risk as part of the consultation process we started yesterday.

The proposed plan on which we are consulting would anticipate NuPharm cease trading by the end of the year.”

The company has issued a statement saying:

“Despite continued investment and the dedication of management time since its acquisition in July 2015, NuPharm has continued to generate significant cash losses each month, absorbed significant management resources and remains subject to MHRA manufacturing restrictions.

“The Board of Quantum Pharma Plc has concluded that it would take unacceptable further cash losses and management time to try to address the operational issues and that NuPharm is not capable of becoming an earnings enhancing business.

Other alternatives were examined but were not considered viable. The Board believes that the best available course of action is to commence a closure of the business in an orderly fashion.

Therefore, Quantum is commencing the consultation process with staff regarding the proposed closure of the NuPharm business.

The proposed closure plan will also be communicated to customers, suppliers and the MHRA today.

The Board envisages that NuPharm will cease trading by the end of December 2016.

The proposed closure plan will allow Quantum Pharma to focus on its core profitable specials business which produces the platform for its Niche Pharmaceutical product growth.”